Rick, Thank good you, morning, and everyone.
quarter flow, the operating of cash great another to macroeconomic team. operating Dynatrace the metrics. driven EPS. results strong by continued results the were These and As Dynatrace was high-end subscription solid we Rick logo of by total guidance the revenue, new ARR, key revenue, of of margin, mentioned, our across lands combination dynamic platform. free environment, beating In our execution strong a QX delivered all
growth deliver a The business of ongoing to balance inherently of allowing and and customers sustained existing profitability. model, efficient an expansion us
budgetary testament a resilience is Our through successfully our value ability a the commitment our tight to team. of success proposition customer environment incredible and to navigate to our
results constant and year-over-year quarter unless Please fourth the the that into in a rates dive let's mentioned will on detail. note growth more currency otherwise basis be in stated. Now
found ARR, range a down and the ARR the by on exceeding health metric mind, performance Please ARR XXX we in can overall the high-end our in a our shared business, license of strength normalizes past, basis and growth adjusted As XX% the reconciliation points. of for which keep IR ARR key adjusted and be have delivered is perpetual of the guidance of currency of wind we website. growth
broad-based America Latin services saw America in the banking government, verticals, with sector. notable strength the and most volatility and geographies despite verticals within financial the banking in strength North We and across insurance, and current
for ended of quarter ARR Total increase million billion, at fourth an the $X.XX year-over-year. $XXX
year-over-year. Foreign exchange headwind million $XX a was
of impact we notable off, seven-figure in Excluding above the net fourth and of customer added the some scheduled guidance, currency perpetual to $XX $XX $XX wins, consistent associated million the new competitive by ARR the and million of ‘XX. our of with expansion across of first that's renewals high-end quarter, base, roll million expansions the license driven quarter in the including close early
customers the ended saw Dynatrace with in sequential over time as an increase first a seasonally X% of over than the is This more last history year. third where company X,XXX representing public We we our strongest increase our year quarter. a
the to contributed of quarter. to adoption. ARR fourth logo mid-XXs strong based in retention in trend point rate gross per platform quarter, away toward XXX% fourth total new logos rates the for Our fiscal XXX dollar nearly and particularly new highlighting XXX a continue from retention in We new the the added be strong a market was net best-in-class year. logos of solutions this
of In This the in well lands, several three $XXX,XXX average trailing landed more approximately quality the modules, year with We XX% focus or driving from a of sizes the aligns than up pleased including takeouts. our new to a new fourth a XX% land logos more our our on with of logo were have to that the the up quarter, propensity lands competitive expand. XX-month basis. ago, logo greater large on new uptick average with
in our our and believe in that past, cross-sell more And customers with using significant three given be customer an customers of with the or opportunities mentioned or ARR enterprise more we've $X the average could As or ARR $XXX,XXX. average modules are XX% nearly Over four million we for an the more expansion base. have average customer of ARR over $XXX,XXX. of modules
the quarter above last guidance. XX%, revenue high-end Moving fourth $X XX%, million quarter the compared on the Subscription to $XXX revenue last of revenue million, $X quarter the fourth our the guidance. of revenue $XXX grew million Subscription total was was the to Total compared revenue, to for million, fourth grew our above quarter high-end year. fourth year.
consistent total margin margins, and the With quarter both QX respect for with to XX% last levels. year fourth non-GAAP was gross
above Our to resulted in was XX% due fourth non-GAAP roughly operating of of XXX margin the income range, for This the the points. a guidance exceeding high-end quarter operating guidance revenue basis by upside $XX million, non-GAAP $X quarter. the million our our in
because highlight share. this Non-GAAP $X.XX range, this revenue our share, $XX some we portion net our in was realize The On basis, by guidance a that $X.XX the was the in P&L profitability, or are our $XX of of and U.S. is ‘XX. metric, we to We following resulted income GAAP tax net high-end planning these GAAP million FY favorable $X.XX of a benefit financial strategic GAAP per million against driven assets allowance substantial in primarily the $XX determined per opportunities a assets several now income able tax deferred above valuation or of million release performance. years
revenue Total and which was revenue of of quick year-over-year. full-year. $X.XX XX% Turning subscription billion both was $X.XX to financial the for summary the results a billion grew
provide Before G&A. across and operating quick income, wanted expenses to marketing update for R&D, I sales and on we our methodology allocating on move operating to a certain
fourth invests In made the scales marketing aligned presentation cost believe to is expenses, to across related In allocate of the related and with assets. allocated the across quarter, functions, a we have facilities expense revise our as G&A, depreciation the to use mostly past, are methodology the we and better was company to decision the the and depreciation which G&A. sales R&D, primarily
align this total is a marketing approximately reduction impact will in G&A operating basis corresponding in no of accordingly. also QX We through R&D points new There and to but you to increase QX to total expense, and XXX methodology. sales recast and see
operating of for the Non-GAAP net resulting $XXX $XXX income million Non-GAAP the XX%. or margin non-GAAP income year operating million, was $X.XX per share. was a in year for
Our advantage the X.X%. rate as tax cash non-GAAP take EPS we able of opportunities of a we Below an cash in guided, one-time includes the quarter. effective to strategic XX% were couple tax planning
backdrop business, on be and As the resiliency business our in through. one that durable more the the we've a mentioned model in past, This of predictability strong shines operating important and rapidly approach to approves believe the to performance as macro evolving balanced and both top bottom even where we line. approach navigate delivers the we
balance the sheet. to Turning
$XXX and of March As million zero of XX, debt. we had cash
Our our the of million for free the million. was cash revenue, flow fourth guidance in the and $XX $XXX full-year quarter or million exceeding XX% $XXX of high-end by
reminder, impacted the As flow in a was approximately full-year first by our a free quarter. one-time of million tax $XX refund positively cash
cash flow the would Excluding normalized refund, approximately free have been tax XX%.
such, it year-over-year. durability best variability XX% contract and the associated billion, is that we metric rates. upselling of the with ARR understand believe to the an important growth increase It business the timing as RPO seasonality as and portion noise would that four remember cause of the will year. removes under revenue associated The RPO QX over our financial quarters was at $X billion last XX% I last measure expect we of remaining over RPO. was to as increase the recognize an of obligation the RPO, quarter, current performance to discuss of the which of is approximately in to bookings The just end $X.X with And health like is of billings.
turn to Now let guidance. me
opportunity The addressable is observability demand is and healthy. market the confident long-term believe growth environment ecosystem in We for expanding. are remains large the growing, We the Dynatrace.
proven our continue our elongation highly has resiliency we the be model product in the fiscal to macro differentiated in balanced guidance. of approach be through observability into And current we've budget and guidance signs dynamic experienced persist fiscal while in seen last is and macro cautious durable. sales landscape back will of it's believe prudent the mindful half Near-term, Our we factor the continue the XXXX. of to to our and to their spending cycles financial of Enterprises year to we are and assumes uncertainty. tighter market, scrutiny
keep in guidance. are to to few There things with a mind our respect
continue future growth mid-teens First, the the net business. for retention the have to for in in and believe in rate the and building in new foundation retention new logos to low-single-digits blocks right logos dollar-based be the XXXX. net rate maintain a We fiscal we grow place
As to from for new roughly two-thirds come full-year of is and ARR quarter, expansion. last mentioned I one-third we logos the to expect new going net come from
more and a and with weakening denominated $XX to of in tailwind we revenue. than revenue foreign to of And tailwind Second, the an and roughly anticipate Based million creates exchange as respectively be roughly rates XXXX, the fiscal U.S. modest to QX, XX% currency, our tailwind be million $XX ARR we on on FX foreign on the immaterial and for April of to expect impact XXXX. respect with million ARR dollar continued business to ARR revenue. $X XX,
the ARR will be on as growth provided guidance adjusted will impact. currency. ARR we reported in longer in basis prepared To Third, point be our less wind moving basis headwind associated the be and with constant ARR XXX reporting down of no simplify an dollar perpetual our referring will remarks. the than license past, forward, rates to is we in as now mentioned growth
to we and perpetual available For presentation website. quarterly data provide financial comparison detail file the in will on the our continue our headwind purposes, trends in
taxes on cash highlight to the point cash And increases impact in like to relates I'd fiscal expected our and final free flow. XXXX the income
fully Given NOLs taxpayer. a have the will strength tax of forwards increasing cash we our utilized full and credit and profitability, we our carry be
our significant in taxes related effective cash tax rate we and cash expect As such, in fiscal a XXXX. increase
guidance with let's our growth And with the with constant as that start in an currency. rates opener, for full-year
ARR of XX%. $X.XXX billion, headwind rate excludes And between the We And in growth some billion ARR did perpetual we as $XXX At of ARR as ARR new mentioned expect the expect to million terms representing be new this this to ARR in growth throughout down. net color we want with quarterly $X.XXX I earlier, assumes high-end and an on net XX% reported don't we an come basis, to how associated on guidance, longer no with while of to the basis. license provide a to year. guide wind you
As $XX QX expected XXXX, had earlier, close mentioned expansions fiscal in from first early we renewals quarter. million included of of which an I roughly to exceptional the
more XXXX the new prior in such, fiscal will As back-end be a the ARR XX% XX% this year, of compared bit loaded to back with of landing and seasonality roughly half. the net years first-half in
to revenue, XX% total the be and billion Underlying is expected $X.XXX year-over-year. XX% to year-over-year. $X.XXX XX% up expect to billion, billion Turning now to for revenue $X.XXX full-year to we $X.XXX revenue up be XX% billion, subscription to that,
million operating this fiscal and for margin the of between be $XXX operating basis year. We XX.X% improvement margin high-end, expect income million, over point to non-GAAP XX% XX resulting At a in represents ‘XX. non-GAAP $XXX a the to
$X.XX XXX XXX expect shares roughly outstanding. based $X.XX share EPS We million million non-GAAP per to of to on
and income cash that net the notable effective mentioned a rate calculations taxes tax assume cash non-GAAP uptick earlier. to EPS non-GAAP XX%, I non-GAAP Our due in of
below expect cash is XXXX. normalized driven points approximately from fiscal X.X% XX% to in $XXX million the increase rate between XXX or exclusively, fiscal $XXX to tax XXXX in be our We roughly free This basis revenue. million levels flow projected our of to by XX%
grow to impact from cash fiscal anticipated free tax free the flow tax Free rate million. is is cash The during XXXX. approximately increase flow expected $XX
seasonality quarters in and lower and expect quarters. fourth variability we first flow flow billings, in As cash higher free second to cash free the the due third significantly in a reminder, and and
million expect million XX% XX% or up expected between and we Looking XX% year-over-year. and QX, be Subscription $XXX to revenue at $XXX million, is million to to growth. now revenue $XXX be total to $XXX XX% between
non-GAAP $XX.X a operating resets, $XX.X tend standpoint, we revenue. expected to between profit XX.X% off our conference. or sales and QX income payroll and a margins, is QX perspective, to a From perform million in and annual million due to XX% dip operating our be of seasonality customer tax kick From to see
Based non-GAAP a XXX of Lastly, to share. be count expected per share is approximately million million on EPS to XXX approximately $X.XX shares.
summary, pleased our we fiscal In are very with and performance. XXXX fourth quarter
strong We track of execution. have and as future continued have consistent demonstrate, balanced growth And optimizing disciplined committed opportunities continuing we a to expect and a long-term approach record to we in maintaining efficiency profitability, invest are value. to that while costs will we to and drive improving
And with that, line questions. we will the for open Operator?
